First time buyer council house

Linzimain87

So with the cost of everything including rent going up I'm thinking about buying my council house. I'm eligible for 13% discount I think if I've worked it our right. Looking at calculations online I think I should be able to get my house for the 48k mark. So I'm just looking for advice on how to clean my finances up and if anyone could advise what's involved in buying a council house?.
I currently have 14k of debt spread across credit cards and catalogues. However with a slight pay rise and my finances being a bit better u should be able to halve that debt within next few months. So any advice on where I should start?
Thanks 

MalMonroe

Hi, there's a lot of the info you need in this link from the government - https://www.gov.uk/right-to-buy-buying-your-council-home

You have to have been a council tenant for 3 years before you can apply and the starting discount is 35% so it's not clear where the 13% discount you mention came from. It also seems to be very cheap for any property but hopefully the info in the link above will be helpful.

You will obviously need to reduce your debt. If you could delay your application to buy until around this time next year, from what you say about your pay rise and improvement in your finances, you should be in a stronger position - your debt should be reduced to almost zero by then and the discount will be higher as well. It's increased every April and you'll have been in your property for an extra year.

What I'd do now, though, if I were you is contact a mortgage broker who doesn't charge, so you can ask some preliminary questions about what's involved in Right to Buy (I googled 'free mortgage brokers in my area' as I'm also wanting to buy my council property.) You could also ask them what your chances will be with your finances as they are - and then as they will be after you've paid off a chunk of your debt.

Most councils, mine included, have a department that deals specifically with Right to Buy applications and you should be able to contact them and see what they have to say. Don't be afraid to make enquiries, just tell them that you've been thinking about using Right to Buy and ask what help they can give. You don't have to commit yourself to anything at the moment.

Hope some of that is helpful. 

Grizebeck

Clear your debt first

[Deleted User]

Clear the debt first, I assume it is cheaper for you to have a mortgage than pay rent? 

Have you checked if you would be liable for any costs via the council in future? Could you afford these costs?

Groovy_Chick_

As someone who bought their council home recently and completed in May 2023, start the ball rolling now as it is a long process.

Call a free broker to see what you can borrow and pay off your debt in the meantime.

The initial application takes 1 month to come back, then they need to do a council property valuation. They will then in another 4 weeks send you a letter with how much you can buy the property for.

You then have to reply to say if you want to purchase or not. Then you will need to get mortgage offer which can take a few weeks. 

Start the process now whilst paying off debts and clear the majority before your mortgage application goes in. 

Hope it all works out for you OP 🙏 

Linzimain87

Groovy_Chick_ said:

As someone who bought their council home recently and completed in May 2023, start the ball rolling now as it is a long process.

Call a free broker to see what you can borrow and pay off your debt in the meantime.

The initial application takes 1 month to come back, then they need to do a council property valuation. They will then in another 4 weeks send you a letter with how much you can buy the property for.

You then have to reply to say if you want to purchase or not. Then you will need to get mortgage offer which can take a few weeks. 

Start the process now whilst paying off debts and clear the majority before your mortgage application goes in. 

Hope it all works out for you OP 🙏 

Thanks what does the council evaluation entail do they just come round to view it to see what it's worth?. My rent has went upto 430 a month and mortgages I see online I could get for 250 a month so deffo worth buying if I can. 

Groovy_Chick_

@Linzimain87 sorry I have been offline for a few days, the valuation will just be to say the home is in a good saleable condition, they were at my home 10 minutes just had a quick look around they then set the price of what they want you to pay for it. Yeah I also saved 300 a month by buying my property. 

ManuelG

Linzimain87 said:

Groovy_Chick_ said:

As someone who bought their council home recently and completed in May 2023, start the ball rolling now as it is a long process.

Call a free broker to see what you can borrow and pay off your debt in the meantime.

The initial application takes 1 month to come back, then they need to do a council property valuation. They will then in another 4 weeks send you a letter with how much you can buy the property for.

You then have to reply to say if you want to purchase or not. Then you will need to get mortgage offer which can take a few weeks. 

Start the process now whilst paying off debts and clear the majority before your mortgage application goes in. 

Hope it all works out for you OP 🙏 

Thanks what does the council evaluation entail do they just come round to view it to see what it's worth?. My rent has went upto 430 a month and mortgages I see online I could get for 250 a month so deffo worth buying if I can. 

I wish my mortgage was £250 a month!